ON TAXATION:
Individual tax payer exemption limit to be raised to Rs 200,000 from Rs 180,000
Upper limit of 20% tax slab raised from 8 lakhs to 10 lakhs
Deduction of upto 10,000 on interest on Savings Bank Accounts
No change in corporate tax rates
Increased exemption will lead to a basic tax saving of Rs 22,000
No capital gains tax from sale of Property if money is invested in SME
Deduction of up to Rs.10,000 from interest from savings bank accounts.
Service tax raised from 10 per cent to 12 per cent
Withholding tax on power, airlines, road and bridges, ports and shipyard, fertilisers, dams and affordable houses lowered to 5 per cent from 20 per cent for 3 years.
ON TAX SLABS:
Income up to Rs 2 lakh - NIL
Income between Rs 2 lakh to Rs 5 lakh - 10%
Rs 5-10 lakh - 20%
Above Rs 10 lakh - 30 lakh